For business owners, changes in America’s workforce have made considerations about leasing vs. buying office space more critical than ever.
When deciding whether to lease office space or buy, business owners should determine what is important to the needs of their business. But an office not only offers certain capabilities, like space to collaborate or work alone. It also sets the groundwork for company culture.
For many, leasing office space is a better option than buying office space. Keep reading to learn why office leasing is the more popular option.
Increased Cash Flow and Less Credit Needed
Leasing an office usually requires a smaller upfront exchange of money. When determining whether buying or leasing an office is the best option for you it’s important to understand how much cash flow you have and how much you need to operate. In other words, don’t blow all of your money on the down payment when you can lease instead.
Leases can also beneficial for businesses struggling with credit issues, like new credit or less than favorable credit. Mortgage lenders adhere to certain standards for lending, and for that reason, some owners may not qualify. If you need to have an office space while you build your credit, then leasing may be an option for you because some Landlords have less stringent credit requirements for leasing. However, some landlords will insist on doing a credit check before you sign a lease, so be prepared for that.
No Maintenance Responsibilities
Another benefit of office leasing is that leasees are not responsible for building maintenance.
When deciding whether to buy or lease, it isn’t enough to consider only the up-front cash requirements. Building owners who buy their office space are responsible for maintenance and that can get costly.
If you like the convenience of making a quick phone call to maintenance when the toilet won’t stop running and then going on with your day, leasing is for you.
Perhaps the biggest value proposition for office leasing is the mobility it offers. That’s because with mobility offers many benefits:
- Room for growth: With many short-term lease options available for most office spaces, businesses are free to grow from a company of one or two to a completely staffed facility. Business owners aren’t backed into making a decision about their space needs before they are finished growing.
- Flexibility for changing business needs: If your business is experiencing growth and change, leasing is a great option. For businesses thinking of expanding services or offerings, owning a building that’s only equipped for your current needs could be an expensive mistake.
- Ability to make new decisions that impact company culture: When you own an office building and you decide, for instance, to go from independent workstations to a collaborative workspace, it could mean you have to undergo a whole remodel which takes time and money. If you are leasing office space you can select a new office space at the end of your term. Tip: Check out our How To Design An Office Layout For Maximum Efficiency.
The Real Estate Forecast
If today’s market is any indication the demand for short-term office leasing is only going to rise. With companies putting an emphasis on culture and looking for office spaces to meet changing work needs, don’t wait to reserve your lease.
If you are looking for office space for rent in the Sterling Heights, Shelby Township, Clinton Township or Macomb County area, then please contact us for more information or to arrange a private tour of our office suites.
You may also contact us by phone at (586) 262-6270.